Developers negotiating deals for a $ 15 billion modernization of John F. Kennedy International Airport were thrown a lifeline on Monday when New York City extended the airport’s lease until 2060.
Queens Airport redevelopment plans stalled last year as the coronavirus pandemic decimated passenger numbers and airline revenues around the world.
The airport operator, the New York and New Jersey Port Authority, spent the past year renegotiating deals with private-sector consortia of airlines, terminal operators and developers, which were to fund more than $ 10 billion in redevelopment plans.
But negotiations were hampered by the airport lease, which was due to expire in 2050, leaving investors too little time to complete long construction projects, recoup costs and make profits.
Seth Lehman, analyst at Fitch Ratings, said Mayor Bill de Blasio’s decision on Monday to extend the lease for 10 years should help developers secure funding and continue to upgrade the airport.